UPDATE: Brean Capital Reiterates Buy Rating, Raises PT on ARRIS Group on Potential for Continued Outperformance

In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on

, and raised the price target from $26.00 to $32.00. In the report, Brean Capital noted, “We see the potential for continued outperformance in 2014. Shares of ARRS rose over 50% since the beginning of 4Q13 as investors warmed to the potential of its acquisition of Motorola's consumer premise equipment (CPE) business. We look for 4Q13 results to signal a return to growth for this business, and believe that Arris will be able to exceed the market's 2014 EPS outlook on more rapid-than-expected cost synergies. We think the return to a positive growth trajectory, the emergence of affirmative spending trends, and the possibility for upside to EPS estimates, as well as the company's aggressive pay-down of debt and its increased capacity to use its balance sheet to make accretive acquisitions of high value-add technology companies, all point to the potential continued outperformance in 2014. As a result, we are raising our target price on ARRS to $32 from $26 and we reiterate our Buy rating.” ARRIS Group closed on Tuesday at $26.18.